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EBRD Provides $250 Million Loan to Upgrade Uzbekistan’s Irrigation Pumps

The European Bank for Reconstruction and Development (EBRD) has approved a sovereign loan of up to $250 million (€240 million) to support the modernization of 110 irrigation pumping stations across Uzbekistan. The funding, allocated to the Ministry of Water Resources, will enable the installation of modern, energy-efficient pumps in 10 regions. According to the EBRD, the project is expected to reduce electricity consumption by approximately 251,000 megawatt-hours (MWh) annually and cut CO₂-equivalent emissions by more than 117,000 tons per year. The financing will also cover refurbishment of related infrastructure and the installation of rooftop solar panels at select stations. This initiative is a core part of Uzbekistan’s national irrigation modernization program, which aims to reduce electricity consumption across the irrigation system by 25%. The program also includes the deployment of water-saving technologies that will reach nearly half of the country’s irrigated farmland. Currently, Uzbekistan operates over 1,600 irrigation pumping stations, an energy-intensive network crucial for the country’s agricultural sector. Recognizing the need for improved efficiency, the water management sector has declared 2025 the "Year of Enhancing Pumping Station Efficiency." In recent years, the country has invested $1 billion in upgrading major stations such as Karshi, Amu-Bukhara, and Amu-Zang. However, the degradation of smaller and mid-sized stations has continued to drive up irrigation water costs. Efforts to conserve water are also underway. By concreting 550 kilometers of canals and ditches, water supply to 200,000 hectares of farmland has been stabilized, saving an estimated 450 million cubic meters of water annually. In 2025, Uzbekistan plans to concrete an additional 18,000 kilometers of main canals nationwide.

EBRD 2025 GDP Forecast European Bank for Reconstruction and Development (EBRD) Downgrade

EBRD Downgrades Kazakhstan’s 2025 GDP Forecast

The European Bank for Reconstruction and Development (EBRD) has revised its 2025 GDP growth forecast for Kazakhstan downward, from 5.2% to 4.9%. The adjustment was published in the bank’s May regional economic outlook. According to the EBRD, the downward revision is largely due to Kazakhstan’s GDP growth in the first quarter being driven primarily by higher oil output at the Tengiz field. While this expansion has supported short-term growth, the bank questions the sustainability of oil production as a long-term driver, particularly under current OPEC+ production limits. Oil Output and Constraints Tengizchevroil (TCO), the operator of the country’s largest oil field, increased daily production at Tengiz to a record 870,000 barrels in January 2025, up 45% from the 2024 average. Output climbed further to 950,000 barrels in March, before dipping slightly to an average of 884,000 barrels per day in early April. Industry projections suggest production may eventually reach one million barrels per day. However, the EBRD cautions that such gains may be constrained by Kazakhstan’s obligations under the OPEC+ agreement. In addition to concerns about oil production, the bank notes the risk of declining demand for Kazakh oil and metals, key exports, especially from China, one of Kazakhstan’s main trading partners. Inflation and Domestic Demand Rising inflation presents another significant challenge. Consumer prices rose 8.9% in January, 9.4% in February, and hit 10% in March, the highest level since November 2023. In April, inflation climbed further to 10.7%, raising concerns about the erosion of domestic purchasing power. Broader Economic Indicators Despite the EBRD’s revised forecast, the Ministry of National Economy reported on May 12 that Kazakhstan’s GDP grew by 6% in the first four months of 2025. For the January-March period, growth was recorded at 5.8%, supported by a range of sectors: transport (22.4%), trade (7%), agriculture (3.9%), and communications (2.6%). Growth in the transport sector was driven by an increase in freight volumes via rail and pipeline, accounting for 20.5% and 19.6% of sectoral output, respectively. Wholesale trade expanded by 7.4%, and retail trade by 6.1%. Outlook As previously reported by The Times of Central Asia, several analysts view ongoing volatility in global markets as indicative of a looming “perfect storm” for Kazakhstan’s economy. This sentiment is echoed in the EBRD’s cautious outlook, highlighting a convergence of external and internal pressures on the country's economic stability.

Farmland GIS platform climate-smart agriculture FAO Green economy Agriculture EBRD Kyrgyzstan

Kyrgyzstan to Improve Farmland Monitoring with EBRD and FAO Support

The European Bank for Reconstruction and Development (EBRD) and the Food and Agriculture Organization of the United Nations (FAO) have launched a joint initiative titled Greening Kyrgyzstan’s Economy: Know More, Act Better, Enhance Results. The project aims to foster climate-smart agriculture through the use of geographic information system (GIS) technology, improving farmland management and bolstering food security in Kyrgyzstan. According to the EBRD, the initiative is supported by its Food and Agribusiness team and involves close cooperation with three key local aggregators: Kaindy-Kant (sugar beet processing), Kirbi (potato processing), and Dan Agro (pulses and legume processing). Together, these partners will help extend the project’s reach to more than 5,000 farmers. Harnessing GIS Technology The GIS platform will be managed by Kyrgyzstan’s State Agency for Land Resources, Cadastre, Geodesy and Cartography. It will be accessible to stakeholders across the agricultural sector, including the Ministry of Water Resources, Agriculture and Processing Industry, as well as farmers and aggregators. The system will enable users to identify sown crops, assess land-use efficiency, estimate productivity, and monitor crop rotation and sustainable water use. With additional funding from the Ministry of Digital Development, the State Agency will also develop a mobile application to improve access and facilitate the adoption of GIS tools at the grassroots level. Meanwhile, the EBRD and FAO will roll out a free e-extension application to provide advisory services to farmers. This collaboration promises substantial benefits for Kyrgyzstan, where agriculture employs nearly half the workforce and contributes approximately 12% of the national GDP. Broader Impact and Expectations The initiative is also expected to deliver environmental gains by enhancing efficiency in a sector responsible for roughly 37% of Kyrgyzstan’s greenhouse gas emissions. These efforts align with the country’s Paris Agreement target of cutting emissions by 16% by 2030. In addition to supporting environmental goals, the project is set to improve food security for Kyrgyzstan’s growing population, projected to reach 9.6 million by 2050. The data-driven approach to land management is designed to help rural communities adapt to climate change, strengthen agribusiness supply chains, and contribute to sustainable economic development. Participating aggregators stand to benefit from access to more accurate planting data, which will improve harvest forecasting and help optimize financing strategies.

Tajikistan EBRD Green economy

Tajikistan’s Green Deal: EBRD Launches Sustainability Pilot Projects

On April 1, the European Bank for Reconstruction and Development (EBRD) inaugurated two demonstration sites under the Tajikistan Green Economy Financing Facility (GEFF II) in the town of Bokhtar. The initiative promotes innovation in sustainable energy and agriculture, backed by funding from South Korea, Austria, and the Green Climate Fund. The total program budget is $50 million. Bringing Energy Efficiency to Life The first site, located at the MoDO Khumo branch in Bokhtar, features a hybrid solar photovoltaic system combining solar panels with energy storage. This technology ensures a stable power supply even during periods of low solar activity. Real-time data on electricity generation and consumption is displayed in the customer area, helping to raise public awareness of sustainable energy practices. The second site, at the Tanzila dekhkan farm in Vakhsh district, showcases how green technologies can boost crop yields and reduce environmental impact. The installation includes: Drip irrigation systems that save up to 70% of water; Solar panels for off-grid electricity; Biogas units using organic waste; Vertical farming in compact spaces. These solutions aim to enhance agricultural productivity and improve farmers' incomes. Strategic Development with the EBRD GEFF II also prioritizes gender equality, offering targeted support to women entrepreneurs seeking green financing for sustainable business ventures. The demonstration sites form part of the EBRD’s broader strategy to promote sustainable development across Tajikistan. Additional pilot locations are planned to showcase further environmentally friendly technologies. EBRD’s Broader Footprint in Tajikistan Established in 1991, the EBRD provides financial and technical support to nearly 40 countries for economic and structural reforms. In Tajikistan, the bank remains a key investor, having committed over €1 billion across 183 projects. Notable EBRD-supported initiatives include: Dushanbe Infrastructure Modernization - €28.45 million to improve roads and a bridge over the Varzob River; Dangara-Guliston Road Upgrade - €38 million for roadworks and infrastructure for electric vehicles; CLIMADAPT - $10 million to help farmers and businesses adopt climate-resilient technologies; Kayrakkum Hydroelectric Plant Modernization - $88 million to boost energy efficiency and support climate adaptation. These investments are helping Tajikistan build climate resilience, modernize infrastructure, and create sustainable pathways for regional development.

EBRD Khorgos Investment Coffee-Processing Plant

EBRD Finances Coffee-Processing Plant at Kazakh-Chinese Border

The European Bank for Reconstruction and Development (EBRD) has announced a loan of up to $10 million to Empire Manufacturing Kazakhstan (EMK) to support the construction of a coffee-processing facility in the Khorgos Free Economic Zone, located on Kazakhstan’s border with China. EMK is a subsidiary of Food Empire Holdings, a global food and beverage group listed on the Singapore Exchange. The new plant will enhance the company’s regional production capacity and is expected to set a new standard for food-processing technology and hygiene in Kazakhstan and Central Asia. Once operational, the facility will export up to 50 percent of its coffee products to markets across Central Asia and the South Caucasus, where demand for Food Empire’s instant beverages is on the rise. The investment aligns with the EBRD’s broader strategy to support private sector growth in Kazakhstan. To date, the Bank has invested more than €11 billion in 335 projects across the country, with a strong emphasis on fostering entrepreneurship and innovation.

Kyrgyzstan EBRD Irrigation Infrastructure Development EU

EU and EBRD to Fund Irrigation Improvements in Kyrgyzstan

On March 17, European Commissioner for International Partnerships Jozef Síkela arrived in Kyrgyzstan, where he met with President Sadyr Japarov to discuss bilateral cooperation and sustainable development initiatives. During the meeting, Japarov emphasized the importance of strengthening trade, economic, and investment ties between Kyrgyzstan and the European Union (EU). “We highly appreciate the ongoing support of the European Union in carrying out democratic reforms and developing a stable and sustainable state in Kyrgyzstan,” Japarov stated. He also proposed expanding cooperation in areas such as green initiatives, early warning systems for natural disasters, low-carbon development, and the transition to renewable energy sources. Japarov highlighted Kyrgyzstan’s role in global environmental advocacy, recalling that the United Nations (UN) had declared 2023-2027 as the "Five Years of Action for the Development of Mountain Regions" at Kyrgyzstan’s initiative. He invited the EU to become a donor for the country’s roadmap for sustainable development in mountain regions, citing shared environmental challenges such as glacier preservation, ecosystem protection, and sustainable growth. EU and EBRD Commit to Infrastructure Development Commissioner Síkela reaffirmed the EU’s commitment to regional integration and connectivity between Central Asia and Europe, highlighting Kyrgyzstan’s renewable energy potential. “Kyrgyzstan has huge potential in the field of renewable energy, and the EU is ready to support projects that bring sustainable and long-term benefits to the region and realize this potential,” Síkela stated. Following their discussions, Japarov and Síkela oversaw the signing of a financial agreement between the Kyrgyz government, the EU, and the European Bank for Reconstruction and Development (EBRD). The agreement launches a major irrigation improvement program in Kyrgyzstan, aimed at enhancing water management and sustainability. Financial Commitments and Infrastructure Projects A financial package of up to €37.96 million will support critical irrigation infrastructure upgrades in Kyrgyzstan’s Jalalabad and Naryn regions. This funding includes: €26.93 million in an EBRD sovereign loan €1.03 million in an EBRD grant €10 million in an EU grant The investment will finance improvements to water intakes, pumping stations, main canals, and distribution networks, with the goal of reducing water losses, cutting electricity consumption, and lowering CO₂ emissions. Additionally, the EBRD and EU will fund the reconstruction and automation of a section of the Western Great Chui Canal in northern Kyrgyzstan. A separate financial package of €23.8 million has been allocated under the EBRD’s Regional Integrated Water Resources Management Framework for Kyrgyzstan and Tajikistan, approved by the EBRD’s Board of Directors in 2024. This package consists of: €15.23 million in an EBRD sovereign loan €5 million in an EBRD grant €3.6 million in an EU grant These investments are expected to modernize Kyrgyzstan’s irrigation systems, enhance water resource management, and improve agricultural sustainability. The EU and EBRD’s latest financial commitments to Kyrgyzstan’s irrigation and water management infrastructure highlight growing cooperation between Europe and Central Asia. These projects aim to increase agricultural productivity, enhance climate resilience, and promote sustainable development in the region.